Global Femtocell Market Analysis, Trends & Forecast Through 2020

Femtocells are cellular base
stations used to provide wireless connectivity for mobile devices such as smart
phones. The global femtocell device market was valued at $220.0 million in 2012
and is expected to grow at CAGR of 42.9% during 2013-2020. Increase in
applications of Smartphone for availing value added services has fueled the
growth of femtocell market. Reductions in cost of electronic equipments such as
mobile phones, laptops and other internet devices have increased the demand for
femtocell. The growth of femtocell market in developing economies is hampered
due to the higher cost. High initial investment required for the setup and the
limited usage in home based applications of femtocell does not justify the
investment made by consumers in the Asian countries. Flexibility in networking
technology trends is also reducing the revenue for femtocell device and service
market. The global femtocell market has enormous potential in developing
economies in future, as companies are trying to explore the untapped market of
mobile users, especially in China and India.

The global femtocell market is
expected to grow in the U.S. and it is estimated to be the fastest growing
market among all other markets during analysis period. Developed countries such
as Europe, Australia, and U.K. have a higher adoption rate of femtocell
technology as compared to developing countries. This is mainly due to cost
involved in femtocell applications. Due to alternate technologies and their
penetrations, the femtocell market prices are expected to decrease in the Asian
market. Similarly, mobile network service providers are promoting the
application of femtocell in developing countries. The network service providers
are using femtocells as compared to conventional broadband services in
commercial applications due to their effectiveness in enterprise market. The
key market players operating in this market are generating competitive
advantage by adopting strategic agreements and collaborations for developing
novel products and services. The most dominant players operating in this market
include Ubiquisys, Alcatel-Lucent, Samsung, Huawei Technologies and Airvana.
These players are adopting partnership as a strategy with small players, to
offer them domain expertise for femtocell technology.